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The huge success of drilling for shale gas via "fracking" in the U.S. has led to claims that a new industrial era is dawning. But in Europe, with different planning laws, population density and limited infrastructure, the technology is causing growing controversy.

Global supermarket chain Tesco plans to launch a tablet device, the Sunday Times newspaper reported on the weekend, with analysts saying a Tesco tablet could prove popular at the cheap end of the market.

All five of the U.K.'s biggest banks posted profits for the first half of 2013, but a report on Monday warned that banks and regulators may be too focused on combating the wrongs of the past to take heed of future threats.

Chancellor Angela Merkel said the German elections in September were a "very close call" and that it would be foolish to see the result as a foregone conclusion, despite her Christian Democratic Union (CDU) leading polls.

Despite growing fears of a housing bubble, the chief executive of Bovis Homes told CNBC that a future rise in interest rates has been priced in by lenders as the homebuilder posted a 50 percent increase in housing operating profits.

The Italian Prime Minister on Sunday warned that a government collapse would undermine economic recovery and anger voters after local media reported center-right leader Silvio Berlusconi was poised to pull the plug on the executive.

One of the U.K.'s top business lobbying organizations has raised its growth forecasts for the U.K. this year and next after a better-than-expected round of economic data, but warned that unemployment will be "sticky".